Dongfeng Motor Corporation, one of China's largest commercial
vehicle producers, said Tuesday it will cooperate with the world
leading auto maker AB Volvo in making medium and heavy-duty
commercial vehicles.
Sweden-based AB Volvo will invest in the medium and heavy-duty
commercial vehicle and engine business of Dongfeng Motor, a joint
venture owned by Dongfeng Motor Corp. and Japan-based Nissan Motor.
The four companies have signed a framework agreement, Xinhua
learned from Dongfeng Motor Corporation's Beijing office on
Tuesday.
The non-binding agreement says Nissan Motor will focus on
long-term cooperation with Dongfeng Motor Corp. in passenger
vehicles and light-duty trucks.
Last March, Nissan Motor sold most of its 19 percent stake in
Dongfeng Nissan Diesel Motor Co., which produces heavy-duty trucks,
chassis and cement mixers, to AB Volvo for 1.5 billion kronor
(US$210 million).
Dongfeng will forge competitive alliances with Nissan and Volvo
to develop products that reflect each partner's specialist
expertise, said the company.
As China's top producer of both medium and heavy-duty trucks,
Dongfeng Motor was established in 2003 by Dongfeng Motor Corp. and
Nissan Motor, who each have a half stake in the company.
AB Volvo is the world's second largest producer of heavy-duty
commercial vehicles. Its products include trucks, buses,
construction equipment, drive systems and aerospace components.
(Xinhua News Agency January 23, 2007)